Find out if you’re affected by this issue here.
What to do if you’re affected
If your bank or another financial company has mis-sold mortgages or other financial products to you, you might be owed compensation. If you are unhappy with your firm’s response, the Financial Ombudsman Service or Pensions Ombudsman may accept and investigate your complaint for free.
Take a look at this check list we have created for you to make sure you are not currently being mis sold or have already been the victim of a mis-selling.
Mis-sold mortgages: (including endowments)
- Your mortgage end date is after your retirement date.
- You weren’t told about the commission the adviser would receive from the lender.
- You were advised to self-certify (borrow money without proving your income) or overestimate your income in order to borrow more.
If you were only paying the interest on your mortgage each month, then the advisor should have made you aware how you would repay your mortgage when it finished.
If your broker or lender did not discuss this with you or give you examples of the cost of a capital and repayment mortgage compared to the lower costs of an interest Only mortgage, then this would be an example of mis-selling.
Furthermore, was it explained to you that you may have to switch your mortgage to a Repayment mortgage rather than relying on rising house prices? If not, then this could also be mis-selling.
If you were looking to consolidate your debts, were you advised that it would be cheaper for you to put all your loans, credit cards and finance on your mortgage?
If not, you could exchange short-term debts for a long term debt by adding it to your mortgage.
Did the adviser explain to you that although you would be lowering your monthly outgoings initially, you may well be lengthening the term of your debt and increasing the amount of interest that you would be paying?
If not, this could be constituted as mis-selling
Were you asked to provide evidence of your income, for example, payslips or audited accounts that could prove your income?
Were you encouraged to take out what is known as a “Self Cert” or “Fast Track” mortgage, where you didn’t need to prove your income?
These mortgage products paid far higher commissions and were very popular among some brokers for that very reason.
If this applied to you, your mortgage may have been mis-sold.
Is your mortgage due to run your retirement age?
Was this pointed out to you?
Did your broker or lender discuss how you would measure your mortgage payments once you were retired?
A good example of this would be if someone takes a mortgage for 20 years at the age of 50. The average age of retirement is at 65, which means there will be 5 years left to pay on the mortgage.
At the time of agreement, the adviser didn’t take into consideration whether the customer could afford to make the payments after the age of 65, then the customer may have mis-sold their mortgage.
Did you pay unreasonably high fees to the broker or advisor that arranged your mortgage?
Were you made aware what the fees would be?
Were they added to your mortgage without you knowing that you are now paying interest on them every month?
If any of these situations apply to you, contact us here at Consumer Rights or approachable solicitors for advice and guidance on how to seek redress. You can contact us below: